Central Asia Metals Plc · LSE:CAML
Central Asia Metals — Investor Presentation (2022)
23 slides from Central Asia Metals's investor presentation, 2022
Slide 1: Q1 2022 Corporate Presentation
Q1 2022 CORPORATE PRESENTATION
Slide 2: Disclaimer
DISCLAIMER The information contained in this confidential document (“Presentation”) has been prepared by Central Asia Metals plc (the “Company”). It has not been fully verified and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authoris
Slide 3: Central Asia Metals (CAML) Operations
CENTRAL ASIA METALS (CAML) OPERATIONS KAZAKHSTAN - Population, 18.8 million - GDP per capita, $9,056 NORTH MACEDONIA - Population, 2.1 million - GDP per capita, $5,888 SASA (100%) KOUNRAD (100%) - Underground zinc and lead mine, northeast North Macedonia - In-situ dump leach and SX-EW processing fac
Slide 4: CAML Summary
CAML SUMMARY H1 2021 revenue H1 2021 EBITDA Creating value for all stakeholders - Strong 2021 production from Kounrad and credible $106.3m $64.4m H1 2020: $75.4m H1 2020: $42.5m performance at Sasa - H1 2021 dividend 8p (H1 2020: 6p) 2021 debt 2021 gross debt - Strong H1 2021 EBITDA margin and cash
Slide 5: 2021 Sustainability Activities
2021 SUSTAINABILITY ACTIVITIES Sustainability reporting Health and safety - 2020 Sustainability Report published in Q2 2021 2021 Sasa Kounrad CAML - Underpinned by independent stakeholder engagement LTIs* 4 0 4 exercise to develop materiality matrix - First report published in accordance with Global
Slide 6: 2021 Sustainability Activities Contd.
2021 SUSTAINABILITY ACTIVITIES CONTD. Caring for the environment - c.35% Group GHG emission reduction identified - Sasa agreement signed to purchase from EVN solely renewable power from 1 July 2021 - CAML Climate Change Strategy development underway - Climate risks analysed and incorporated into ris
Slide 7: Kounrad Copper Operation
KOUNRAD COPPER OPERATION Eastern Dumps 7 Remaining recoverable resources Kounrad 5 6 mine 2 20 Eastern Dumps c.10,000t 9-10 SX-EW Western Dumps c.124,000t 13 plant Total c.134,000t Western Dumps 21a 15 1a 16 Kounrad village 22 Central Asia Metals PLC 6
Slide 8: Kounrad Production
KOUNRAD PRODUCTION In-situ dump leach and SX-EW plant 16,000 140,000 Cumulative annual production (t) 14,000 120,000 - Exceeded 2021 guidance Annual production (t) 12,000 100,000 - Q4 2021 copper production, 3,680t 10,000 80,000 8,000 - 2021 copper production, 14,041t 60,000 6,000 - 2022 guidance, 1
Slide 9: H1 2021 Kounrad C1 Copper Cash Cost
H1 2021 KOUNRAD C1 COPPER CASH COST C1 cash cost $0.57/lb (H1 2020: $0.48/lb) Local G&A H1 2021 H1 2021 H1 2020 H1 2020 $0.06/lb Cost $m $/lb $m $/lb Reagents 1.8 0.13 1.2 0.08 Realisation Power 1.1 0.08 0.9 0.06 $0.08/lb Payroll 1.8 0.13 1.7 0.12 Processing $0.43/lb Materials 0.5 0.03 0.5 0.04 Cons
Slide 10: Sasa Zinc and Lead Mine
SASA ZINC AND LEAD MINE Highly profitable operation - Sasa EBITDA since acquisition to H1 2021 (<4 years) of $214.1m - Debt repaid since acquisition to end 2021 of $163.7m - Reserves and resources to 2037 - Mechanised underground mine Central Asia Metals PLC 9
Slide 11: Sasa Production
SASA PRODUCTION 2021 production Unit 2021 2020 2019 2018 - Zinc in concentrate, 22,167t (Q4 2021, 5,133t) Ore mined t 818,609 826,421 817,714 803,101 - Lead in concentrate, 27,202t (Q4 2021, 6,469t) - Challenging ground conditions plus enhanced Plant feed t 830,709 820,215 820,491 804,749 approach t
Slide 12: H1 2021 Sasa C1 Zinc Eq. Cash Cost
H1 2021 SASA C1 ZINC EQ. CASH COST C1 cash cost $0.59/lb (H1 2020: $0.43/lb) H1 2021 H1 2020 H1 2021 H1 2020 C1 cash cost Mining Processing $m $m $0.19/lb $0.09/lb Zinc payable - - 9,486t 10,242t production Pro-rata costing - - 42% 37% zinc Realisation $0.25/lb Mining 9.3 8.3 $0.19/lb $0.14/lb Local
Slide 13: Cut and Fill Project - Central Decline
CUT AND FILL PROJECT - CENTRAL DECLINE Development commenced - New decline from surface offers increased ventilation, easier access for reticulation infrastructure and the ability to increase ore mined to 900,000t in the medium term - Profile increased to allow for potential future electric vehicle
Slide 14: Cut and Fill Project – Paste Backfill and DST
CUT AND FILL PROJECT – PASTE BACKFILL AND DST Paste backfill plant Dry stack tailings - All major plant components ordered, including - Knight Piésold completed conceptual landform design - Civils and structural steels - Thickener and flocculant plant - Construction drawings for stacking of tailings
Slide 15: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Returns to shareholders Deleveraging, 2017 - 2021(corporate debt facility) - H1 2021 dividend, 8p - 40% of FCF - CAML dividend policy, 30-50% FCF - Total dividends since 2012, $229.0m or 120p 120p 225 200 175 150 23.4 125 $m 100 75 50 25 0 2012 2013 2014 2015 2016 2017
Slide 16: Capital Allocation Priorities Contd.
CAPITAL ALLOCATION PRIORITIES CONTD. Investment in the business Growth opportunities - Cut and Fill Project at Sasa achieves: - Maintain focus on business development activities - Safer operation - Size and liquidity becoming more important considerations - Maximum extraction of mineral resources -
Slide 17: Outlook
OUTLOOK A strong sustainable business - Producing the metals essential for modern living safely and sustainably - Strong H1 2021 EBITDA and FCF - Capital allocation priorities - H1 2021 dividend, 8p - Accelerated deleveraging ($10m) - Implementation of Sasa Cut and Fill Project underway - Looking fo
Slide 18: Contact Details
DIRECTOR OF CORPORATE RELATIONS CONTACT Louise Wrathall Sackville House DETAILS 40 Piccadilly London W1J 0DR louise.wrathall@centralasiametals.com +44 (0) 207 898 9001 https://www.centralasiametals.com/
Slide 19: Appendix
APPENDIX
Slide 20: Share Price / Shareholders
SHARE PRICE / SHAREHOLDERS Share price performance versus peers 250 Share price* (AIM:CAML) £2.32 Total no. voting shares 176,026,619 200 Treasury shares 471,647 Issued shares 176,498,266 Market capitalisation £409m 150 Free float 97.7% Average daily volume 0.47m 100 *Share price as of 14 January 20
Slide 21: Board of Directors
BOARD OF DIRECTORS Gavin Ferrar Nurlan Zhakupov CFO David Swan NED Mike Prentis - Kazakhstan experience NED Dr Gillian Davidson - accounting experience NED Member - Capital markets experience - Nomination Committee NED Chair - Sustainability Committee - sustainability experience - Audit Committee Me
Slide 22: Kounrad Resources and Technology
KOUNRAD RESOURCES AND TECHNOLOGY Quantity, Mt Grade (%) Contained copper, kt Eastern Dumps Indicated 89.7 0.10 85.8 Inferred 79.6 0.10 81.7 Total 169.3 0.10 167.5 Western Dumps Indicated 296.4 0.10 282.4 Inferred 181.5 0.09 164.3 Total 477.9 446.7 Total East 647.1 614.2 and West Prepared by Wardell
Slide 23: Sasa Reserves and Resources (JORC 2021)
SASA RESERVES AND RESOURCES (JORC 2021) Pb contained Zn contained Mt Pb grade (%) Zn grade (%) Ag grade (g/t) Ag (koz) (kt) (kt) Svinja Reka – Ore Reserves Probable 10.7 4.0 3.0 22.3 431 320 7,671 Total 10.7 4.0 3.0 22.3 431 320 7,671 Svinja Reka – Mineral Resources Indicated 12.7 4.7 3.3 25.7 588 4